Full-Year Result Hannu Syrjänen, President and CEO February 8, 2007

Transcription

1 Full-Year Result 2006 Hannu Syrjänen, President and CEO February 8, 2007

2 Key Figures

3 Key Indicators EUR million Net sales Operating profit % of net sales Operating profit excluding major non-recurring capital gains % of net sales Balance sheet total Capital expenditure * Return on equity (ROE), % Return on investment (ROI), % Equity ratio, % Gearing, % Interest-bearing liabilities Net debt Earnings/share, EUR Cash flow from operations/share, EUR Dividend/share, EUR ** Market capitalisation, EUR million Personnel under employment contract, average 1 12/2006 2, , , , /2005 2, , , ,885 Ch % * Definition of capital expenditure has been changed in Comparative data has been adjusted accordingly. ** Year 2006 proposal of the Board of Directors Hannu Syrjänen

4 The SanomaWSOY Group Net sales, EUR million EBIT, EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen

5 Net Sales by Division and by Geographic Area 1 12/2006 (1 12/2005) Net sales EUR 2,742.1 million By Division By geographic area Rautakirja 24% (24%) SWelcom 5% (5%) Sanoma Magazines 44% (44%) Other countries 6% (4%) Finland 49% (51%) SanomaWSOY Education and Books 11% (11%) Sanoma 16% (17%) EU countries 45% (45%) The Netherlands 25% (26%) CEE countries and Russia 15% (13%) Intra-group eliminations excluded Hannu Syrjänen

6 SanomaWSOY s Advertising Sales % of net sales 1 12/ /2005 Sanoma Magazines 26% 24% Sanoma 52% 51% SWelcom 58% 58% The Group 23% 22% Hannu Syrjänen

7 Digital Media Net sales of SanomaWSOY s digital media in 2006 EUR 236 million, 8.6% of net sales Sanoma Magazines online advertising sales in the Netherlands grew by 55% Sanoma s online advertising grew by 42% Digital media includes both online and TV operations Hannu Syrjänen

8 Market Environment

9 Advertising Sales in Finland EUR 1,000 12/2006 Ch % 1 12/2006 Ch % NEWSPAPERS 56, , MAGAZINES 10, , TELEVISION 20, , RADIO 2, , OUTDOOR 2, , CINEMA , ONLINE 2, , Advertising sales revenues, total 96, ,118, Net figures, Change-% to previous year. Source: TNS Gallup Hannu Syrjänen

10 Advertising Sales in the Netherlands EUR 1,000 TELEVISION NEWSPAPERS MAGAZINES UNSOLICITED ADVERTISING MATERIAL RADIO INTERNET OUTDOOR CINEMA TELETEKST Total 1 12/2006 2,790, , , , , , ,742 17,180 31,967 5,588,967 Ch % Gross figures, Change % compared to the previous year. Source: Nielsen Media Research Hannu Syrjänen

11 Divisions

12 Sanoma Magazines Key Developments Acquisitions EPN International, publisher of home and decoration magazines Wegener Golf, publisher of golf titles estranky.cz, website producer Kieskeurig.nl, product and price comparison site Launches The most significant one: women s weekly Gloria (Russia) Others include: SmartMoney (Russia), Moete Dete (Bulgaria), Sara (Finland), National Geographic (Russia), National Geographic (Serbia), Casa si Gradina (Romania), HELLÒ V.I.P.! (Hungary), Story (Bulgaria), National Geographic Kids (Hungary) Appointments Sanoma Uitgevers: Dick Molman as CEO, Paul Molenaar as COO, Online and New Media Innovation, and Henk Scheenstra as COO Print Sanoma Magazines Belgium: Aimé Van Hecke as CEO In 2007 Investments in print and digital business continue Hannu Syrjänen

13 Sanoma Magazines Net sales, EUR million EBIT, EUR million Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 Hannu Syrjänen

14 Sanoma Magazines 1 12/2006 EUR million Net sales Sanoma Magazines Netherlands Sanoma Magazines International Sanoma Magazines Belgium Sanoma Magazines Finland Aldipress Eliminations Operating profit % of net sales Operating profit excluding major non-recurring capital gains % of net sales Balance sheet total Capital expenditure Return on investment (ROI), % Personnel under employment contract, average 1 12/2006 1, , , /2005 1, , ,275 Ch % Hannu Syrjänen

15 Sanoma Key Developments Newspaper brands reach more people than ever Helsingin Sanomat: 1.1 million readers, over 700,000 unique weekly visitors Ilta-Sanomat: some 1 million readers, nearly 1 million unique weekly visitors Investments in digital business Establishing Sanoma Digital business unit Taloussanomat strengthens its online presence Heavy investments in free sheets Acquisition of the Finnish operations of Metro Price increase of Ilta-Sanomat In 2007 Investments in digital business continue Further rationalisation of operations Net sales, EUR million Net sales and adjusted EBIT*, EUR million ** Net sales Adjusted EBIT* EBIT, EUR million * EBIT has been adjusted with major non-recurring capital gains ** From 2004, EBIT is according to IFRS Hannu Syrjänen

16 Sanoma Net sales, EUR million EBIT, EUR million Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 Hannu Syrjänen

17 Sanoma 1 12/2006 EUR million Net sales Helsingin Sanomat (daily newspaper) Ilta-Sanomat (quality tabloid) Sanoma Lehtimedia (regional newspapers) Others Eliminations Operating profit % of net sales Operating profit excluding major non-recurring capital gains % of net sales Balance sheet total Capital expenditure Return on investment (ROI), % Personnel under employment contract, average 1 12/ , / ,782 Ch % Hannu Syrjänen

18 SanomaWSOY Education and Books Key Developments Acquisitions Láng, the leading Hungarian educational publishing and training company Aromedia and LDC, Dutch career orientation and study consulting companies AAC Global, provider of language services AAC gained a significant translation and documentation contract Finlandia Junior Prize for WSOY s children s book Keinulauta Remes the best seller of domestic fiction In 2007 Expansion of educational publishing continues Hannu Syrjänen

19 SanomaWSOY Education and Books 120 Net sales, EUR million EBIT, EUR million Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Hannu Syrjänen

20 SanomaWSOY Education and Books 1 12/2006 EUR million Net sales Educational publishing Publishing Others Eliminations Operating profit % of net sales Operating profit excluding major non-recurring capital gains % of net sales Balance sheet total Capital expenditure Return on investment (ROI), % Personnel under employment contract, average 1 12/ , / ,311 Ch % Hannu Syrjänen

21 SWelcom Key Developments Nelonen s share of TV advertising in Finland grew to 31.4% Significant growth in broadband and pay TV services, over 300,000 households connected to Welho s cable network New services: WLAN hotspots in Helsinki, PCTV service enabling watching TV via pc, first in Finland to offer HDTV for its customers New licence for a digital pay TV channel After the review period Two new commercial radio stations (Radio Rock, Radio Aalto) New, free-to-air TV channel JIM starting on February 26 In 2007 Current excellent portfolio enables investments in new businesses Hannu Syrjänen

22 SWelcom Net sales, EUR million EBIT, EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen

23 SWelcom 1 12/2006 EUR million 1 12/ /2005 Ch % Net sales Nelonen (commercial TV channel) Others Eliminations Operating profit % of net sales Operating profit excluding major non-recurring capital gains % of net sales Balance sheet total Capital expenditure Return on investment (ROI), % Personnel under employment contract, average Hannu Syrjänen

24 Rautakirja Key Developments All businesses successful Integration of Lietuvos Spauda kiosk chain Increased customer volumes in kiosk operations New POS system in Finland Centralising press distribution Aldipress transferred to Rautakirja from Jan 1, 2007 Bookstore chains in Finland and Estonia expanded A total of 60 stores in Finland and 7 in Estonia 2006 best year ever for movie theatres In 2007 Integration of Aldipress, expansion of press distribution Hannu Syrjänen

25 Rautakirja 250 Net sales, EUR million EBIT, EUR million Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 Hannu Syrjänen

26 Rautakirja 1 12/2006 EUR million Net sales Kiosk operations Press distribution Bookstores Entertainment Others Eliminations Operating profit % of net sales Operating profit excluding major non-recurring capital gains % of net sales Balance sheet total Capital expenditure Return on investment (ROI), % Personnel under employment contract, average 1 12/ , / ,023 Ch % Hannu Syrjänen

27 Outlook for 2007

28 Group s Outlook for 2007 Outlook: Net sales to increase more than in the previous year Operating profit excluding the major non-recurring capital gains to improve In 2006, operating profit excluding these capital gains totalled EUR million Hannu Syrjänen

29 Committed to Future

30 Strategic Focus Areas Growth and profitability Expansion especially in growth markets Value-adding consolidation Controlled increase of investments in digital media at optimal pace and to optimal extent Efficiency efforts in all businesses Market leadership Value-adding market leadership in chosen businesses and markets One of the leading European magazine and educational publishers Way of doing Respect for local cultures Clear principles of business conduct Customer centric product and service development Result-oriented, talented, and cooperative people Value-adding cross-divisional and international cooperation Fast and flexible processes Hannu Syrjänen

31 Consolidated Income Statement EUR million NET SALES Other operating income Materials and services Personnel expenses Other operating expenses Depreciation and impairment losses OPERATING PROFIT Share of result of associated companies Financial income Financial expenses RESULT BEFORE TAXES Income taxes RESULT FOR THE PERIOD 1 12/2006 2, , /2005 2, , Ch % Attributable to: Equity holders of the Parent Company Minority interest Hannu Syrjänen

32 Consolidated Balance Sheet EUR million Ch % ASSETS Non-current assets, total Current assets, total Assets, total 2, , , , EQUITY AND LIABILITIES Equity, total Non-current liabilities Current liabilities Liabilities, total 1, , , , , , EQUITY AND LIABILITIES, TOTAL 3, , Hannu Syrjänen